Reliance Industries Q2 Results Good Or Bad? PAT Jumps 41% YoY, Quarterly Revenue Highest-Ever

Mukesh Ambani-backed Reliance Industries posted a whopping 41% growth in consolidated net profits, attributed to owners, to Rs 25,548 crore in the second quarter of FY27. The behemoth recorded its highest-ever quarterly revenue of Rs 3.32 crore in Q2FY27. While EBITDA came in strong from the O2C business and telecom arm, retail business EBITDA was worrisome and decreased steeply. Alongside its Q2, Jio Platforms and Reliance Retail have also declared their Q2 earnings report.

Reliance Industries Q2 Results:

Consolidated PAT came better than expected to Rs 25,548 crore, registering a growth of 41% from Rs 18,165 crore in the same quarter a year ago. Reliance had posted consolidated net profit of Rs 20,946 crore in the preceding quarter.

PAT including share of profit/loss of associates and joint ventures, surged by 33.8% YoY to Rs 29,550 crore.

On the top-line front, consolidated revenue witnessed a massive 29% growth to Rs 362,268 crore, which is also the highest ever in a quarter. O2C business and Jio Platforms contributed to the strong revenue.

"During 2Q FY27, our businesses delivered a strong performance despite a complex operating environment. Commodity markets remained volatile while geopolitical tensions continued to weigh on global supply chains. Against this backdrop, the domestic orientation of our portfolio, combined with operational discipline and versatility of our integrated businesses, helped Reliance navigate external volatility effectively," said chairman and MD, Mukesh Ambani.

On segment-wise performance, Jio Platforms revenue surged by 11.3% YoY, driven by continued subscriber additions, ARPU increase and healthy growth in digital services.

Meanwhile, Oil-to-Chemicals (O2C) revenue climbed by 44.2% YoY, led by sharp increase in crude and product prices. Crude price for the quarter increased 40.6%, whereas transportation fuel prices were up 50-78% Y-o-Y. Prices for most of the downstream chemical products were up 25-35% Y-o-Y, driven by strong feedstock prices.

Oil and gas segment revenue came in stable Y-o-Y. KGD6 gas production as well as price realisation was lower, which was offset by higher condensate price realisation. Further, improved volumes and price realization for CBM supported revenues, as per Reliance.

Also, Reliance Retail revenue grew 6.4% Y-o-Y to Rs 91,716 crore, with performance impacted by the festive calendar shift to Q3.

In the quarter, Reliance's CAPEX stood at Rs 38,153 crore, largely driven by investments in the O2C and New Energy projects under implementation, and on building and expanding the infrastructure and distribution reach of the consumer businesses.

Furthermore, Reliance Industries EBITDA increased by 23.9% Y-o-Y to Rs 62,409 crore. Under this, Jio's EBITDA climbed 16.6% YoY and O2C business EBITDA skyrocketed by a whopping 67.9% Y-o-Y.

On the O2C business performance, Ambani added, "Our O2C business delivered a particularly strong performance this quarter, led by tight fuel markets, improved downstream petrochemical deltas and firm domestic demand. Our ability to optimise feedstock sourcing and product placement along with operations across the value chain enabled us to improve margin capture. This performance underscores the strength and resilience of our O2C business."

However, Reliance Retail EBITDA decreased sharply by 8.6% Y-o-Y to Rs 6,228 crore, with margin at 7.8%, down 120 bps Y-oY, reflecting planned investment phase in Digital Commerce, input-cost inflation absorbed for customers, and the festive shift to Q3.

Also, oil and gas EBITDA slipped 2% YoY, on account of declining KG D6 gas revenues and higher GoI levies. This was partly offset by favourable movement in exchange rate.

Looking ahead, Ambani said, "Our disciplined capital allocation has helped create businesses that provide sustainable cash-flows and will remain significant contributors to India's energy independence and technology evolution."